Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. The Index which appeared to have slowed its descent a week ago, was unable find its footing and spiralled downward once again. The INK CIN came to rest at 1161.93 for a loss of 19.36 points or 1.6%.
The Index's short-term momentum indicator (RSI) fell 5 points or about 10% to 41.10. MACD dropped 5.69 points to -7.91. Interestingly, this is the Index's most oversold reading since the February 2016 panic when global markets which had plunged - bottomed and went on a major rally.
Resistance is currently at 1170 and 1185. Support now sits at 1150 and 1120.
Given that RSI held above 35 over the last two weeks even as the INK CIN tumbled lower and lower, we note these may be signs of positive divergence, telegraphing an upturn. When you also consider the heavily oversold condition of the Index's MACD (comparable to when markets bottomed last February), we have strong grounds to anticipate a rebound.